ACCOUNTING FOR PARTNERSHIP

REMEDIAL QUIZ

1. EDNA, FRED and GERRY invest P 40,000, P 30,000, and P 25,000, respectively, in a partnership on June 30, 2017.
They agree to divide net income or loss as follows:
 Interest at 10% on beginning capital account balances
 Salaries of P 10,000, P 8,000, and P 6,000 respectively to EDNA, FRED and GERRY
 Remaining net income or loss divided equally
 A minimum of P 15,000 of income guaranteed to GERRY
If the net income for the year ended June 30, 2018, before interest and salary allowances to partners was P 44,000, the net
income credited to EDNA is
A. P 17,500
B. P 16,500
C. P 16,000
D. P 14,000

2. On January 1, 2 017 Klay and Steph formed Splash Brothers Partnership organized to train prospective professional
basketball players on how to shoot 3-pointer with a splash. The articles of co-partnership provide that profit or loss
shall be distributed accordingly:
 10% interest on average capital balance
 P 50,000 and P 100,000 quarterly salary for Klay and Steph, respectively
 The remainder shall be distributed in the ratio of 3:2 for Klay and Steph, respectively.
The following transactions regarding the capital balance of the partners for the year 2017 are provided:
Klay Steph
January 1, 2017 Investment P 1,000,000 P 500,000
March 31, 2017 Investment 100,000
July 1, 2017 Withdrawal (200,000)
September 30, 2017 Withdrawal (200,000)
October 1, 2107 Investment 700,000
If the adjusted capital balance of Klay on December 31, 2017 is P 1,991,500, what is the amount of net income
reported for year 2017?
A. P 1,000,000
B. P 1,500,000
C. P 1,800,000
D. P 2,000,000

3. Partners Francis and Donna share income and loss equally after each has been credited in all circumstances with
annual salary allowances of P 30,000 and P 24,000, respectively. Under this arrangement, in which of the following
circumstances will Francis benefit by P 6,000 more than Donna?
A. Only if the partnership has earnings of P 54,000 or more for the year
B. Only if the partnership does not incur a loss for the year
C. In all earnings or loss situation
D. Only if the partnership has earnings of at least P 6,000 for the year

4. Navarro and Sison formed a partnership on January 2, 2018, and agreed to share income 90% and 10% respectively.
Navarro contributed a capital of P 50,000. Sison contributed no capital but has a specialized expertise and manages
the firm full-time. There were no withdrawals during the year. The partnership agreement provides for the following:
 Capital accounts are to be credited annually with interest at 5% of beginning capital.
 Sison is to be paid a salary of P 2,000 a month.
 Sison is to receive a bonus of 20% of income calculated before deducting his bonus, his salary, and interest on
both capital accounts.
 Bonus, interest and Sison’ salary are to be considered partnership expenses.
The partnership’s 2018 income statement follows:
Revenues P 192,900
Expenses (including salary, interest and bonus) 99,400
Net Income P 93,500

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Ignoring income tax, what is the amount of bonus to Sison?
A. P 23, 376
B. P 30, 000
C. P 24, 000
D. P 31, 467

5. Rum, Vodka and Whisky are partners with average capital balances in 2017 of P 240,000, P 120,000, and P
80,000 respectively. Partners receive 10% interest on their average capital balances. After deducting salaries
of P 60,000 to Rum and P 40,000 to Vodka, the residual profit or loss is divided equally. In 2017, the
partnership sustained a P 66,000 loss before interest and salaries partners.
By what amount should Rum’s capital account change?
A. P 14,000 increase
B. P 70,000 decrease
C. P 22,000 decrease
D. P 84,000 decrease

6. Princess, Queen, and Royal Guard are partners in a lumber company. Their partnership agreement provides
for the following profit and loss distributions:
 Princess, Queen, and Royal Guard are to receive salaries of P 40,000, P 36,000, and P 13,650,
respectively. Princess is to receive a bonus equal to 10% of income before the bonus.
 Each partner is to receive 10% interest on the weighted average capital balance.
 Withdrawals are considered to be reduction of capital for purposes of interest calculations.
 Any remaining profits or losses are to be divided equally among the partners.
Capital balance information for 2017 is as follows:
Princess Queen Royal Guard
Beginning capital balance, Jan.1, 2017 P 10,000 P 6,000 P 40,000
Withdrawal of capital, April 1, 2017 (1,000) --- (2,000)
Capital investment, July 1, 2017 2,000 4,000 15,000
Withdrawal of capital, Oct. 1, 2017 (1,000) (2,000) ---
Assume princess’s share of the allocated profits is to be withdrawn.
How much profit must the partnership earn to allow Princess to withdraw exactly P 61,000 excluding previous
withdrawals?
A. P 61,000
B. P 89,650
C. P 130,000
D. P 96,000

7. You were offered the following profit sharing options:

 P 50,000 salary plus 10% residual profit sharing
 P 20,000 salary plus 25% bonus after the bonus
Salaries traceable to other partners totalled P 200,000. What is the level of partnership profit in which you would be
indifferent to either option?
A. P 50,000
B. P 110,000
C. P 120,000
D. P 180,000

8. A, B and C are partners with average capital balances during 2018 of P 120,000, P 60,000 and P 40,000, respectively.
Partners receive 10% interest on their average capital balances. After deducting salaries of P 30,000 to A and P 20,000
to C, the residual profit or loss divided equally. In 2019 the partnership sustained a loss of P 33,000 before interest
and salaries to partners. By what amount should A’s account change?
A. P 7,000 increase
B. P 11,000 decrease
C. P 35,000 decrease

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 D. P 42,000 increase

9. A and B are partners with capital of P 60,000 and P 20,000, respectively. Profits and losses are divided in the ratio of
60:40. A and B decided to form a new partnership with C, who invested land valued at P 15,000 for a 20% capital
interest in the new partnership. C’s cost of land was P 12,000. The partnership elected to use the bonus method to
record the admission of C into the partnership. C’s capital account should be credited for?
A. P 12,000
B. P 15,000
C. P 16,000
D. P 19,000

10. Partner H, I, and J invested P 200,000, P 200,000 and P 100,000, respectively and agreed to share profit in the ratio of
4:4:2, respectively after providing the following:
 Salaries of P 50,000 and P 40,000 to H and J, respectively
 20% bonus on net income after salaries and bonus
H and J withdrew P 40,000 and P 20,000, respectively, in anticipation of profits. The partners agreed to re-align their
capital balances at the end of every period to their profit sharing ratio. The partnership made P 80,000 net income
during the year. If the original capital balances is to be maintained and the re-alignment is to be made by additional or
cash withdrawal by the partner, which is correct?
A. J shall withdraw P 14,000
B. I shall withdraw P 4,000
C. H shall invest P 6,000
D. H shall withdraw P 4,000

The accounts of partnership of RST at December 31, 2017, are as follows:

Cash P 82,500 Liabilities P 62,500
Non-cash assets 728,750 Loan from S 20,000
Loan to R 15,000 R, Capital 206,250
S, Capital 366,250
T, Capital 171,250
Total P 826,250 Total P 826,250
11. Determine the amount payable to Partner T, if cash is paid just before the start of liquidation on December
31, 2017
A. P 16,750 C. P 16,679
B. P 17,650 D. P 15,560

12. Determine the amount Partner R and Partner S would have received by the time Partner T would have
received a cumulative amount of P 45,000
A. R, P 1,785 and S, P 72,650
B. R, P 1,578 and S, P 70,265
C. R, P 1,875 and S, P 70,625
D. R, P 1,758 and S, P 72,600

On January 1, 2107, the partners CARLO, DIEGO, and EDGAR, who share profits and losses in the ratio of
5:3:2, respectively, decided to liquidate their partnership. On this date the partnership condensed balance sheet
was as follows:
Cash P 50,000 Liabilities P 60,000
Other Assets 250,000 CARLO, Capital 80,000
DIEGO, Capital 90,000
EDGAR, Capital 70,000
Total P 300,000 Total P 300,000

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On January 15, 2017, the first cash sale of other assets with a carrying amount of P 150,000 realized P 120,000.
Safe installment payments were made on the same date.
13. How much cash should be distributed to each partner CARLO, DIEGO and EDGAR, respectively?
A. P 15,000; P 51,000; P 44,000
B. P 40,000; P 45,000; P 35,000
C. P 55,000; P 33,000; P 22,000
D. P 60,000; P 36,000; P 24,000

ASSER, JING AND TONY are in the process of liquidating their partnership. They have the following capital
balances and profit or loss percentages:
Capital Balance P/L %
ASSER 5,000 debit 20%
JING 18,000 credit 50%
TONY 6,000 credit 30%
The partnership balance sheet shows cash of P 5,000, non-cash assets of P 14,000, and no liabilities
14. Assuming no liquidation expense, what safe payments could be made?
A. P 5,000 split between JING and TONY by a ratio of 5:3 respectively
B. P 5,000 JING only
C. P 1,000 to ASSER, P 2,500 to JING and P 1,500 to TONY
D. P 18,000 to JING only

Partners DIEGO, ELMO, and FRANCO have capital balances of P 40,000, P 90,000 and P 30,000, respectively,
immediately prior to liquidation. Total remaining assets have a book value of P 160,000, the liabilities having
been paid. Among these remaining assets is a machine with a fair value of P 35,000. the partners split profits
and losses equally. ELMO covets the machine and is willing to accept it for P 35,000 in lieu of cash. The other
partners have no designs on specific assets, only cash in liquidation
15. How much cash in addition to the machine, would first be distributed to ELMO, before any of the other
partners received anything?
A. P 15,000
B. P 50,000
C. P 166,666
D. P 300,000

Partners JOJO and MAR, who share profits and losses equally, decided to incorporate the partnership at
December 31, 2017. The partnership net assets after the following adjustments will be contributed in exchange
for shares of stocks from the corporation.
I. provision of allowance for doubtful accounts, P 3,000
II. adjustment of understated inventory by P 5,000, and
III. recognition of additional depreciation of P 1,000
The corporation’s ordinary share is to have a par value of P 100 each and the partners are to be issued
corresponding shares equivalent to 80% of their adjusted capital balance.
The balance sheet at December 31, 2017 follows:
Cash P 30,000 Liabilities P 43,000
A/R 25,000 Accu. Dep’n 2,000
Inventory 35,000 Jojo, Capital 35,000
Equipment 20,000 Mar, Capital 30,000
Total P 110,000 Total P 110,000

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16. Determine the total credit to APIC upon incorporation of the partnership
A. P 6,750
B. P 13,200
C. P 6,000
D. P 66,000

17. The number of ordinary shares issued to partner Mar is

A. 284
B. 300
C. 244
D. 330

18. Katie, Lenie and Minnie decided to liquidate their partnership on July 31, 2017. Their capital balances and
profit and loss ratio on this date, before liquidation, are:
Capital P&L Ratio
Katie P 224,000 25%
Lenie 288,000 30%
Minnie 128,000 45%
The net loss from January 1 to July 31, 2017 is P 48,000. Also, on this date, cash and liabilities are P 136,000
and P 232,000, respectively.
Which of the following is inconsistent with the result of liquidation if Lenie received P 247,000 in full
settlement of her interest in the firm?
A. Total cash paid to partners, P 736,000
B. Non-cash assets were sold for P 600,000
C. Minnie received P 66,800
D. Katie’s share in loss on realization of non-cash assets, 22,000

19. A balance sheet for the September Partnership, who shares profits in the ratio of 50:25:25 for partners SEP,
TEM, and BER, respectively shows the following balances just before liquidation:
Cash P 648,000
Other Assets 3,213,000
Liabilities 1,080,000
SEP, Capital 1,188,000
TEM, Capital 837,000
BER, Capital 756,000
ON the first month of liquidation, certain assets are sold for P 1,728,000. Liquidation expenses of P 54,000 are
paid and additional liquidation expenses are anticipated. Liabilities are paid amounting to P 291,600 and
sufficient cash is retained to ensure the payment to creditors before making first payment to partners, Partner
SEP receives P 337,500
Calculate the amount of cash withheld for anticipated liquidation expenses
A. P 162,000
B. P 950,400
C. P 278,400
D. 0

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20. HELEN, IRENE and JESSA were partners with capital balances on January 2, 1018 of P 560,000, P 672,000, and P
496,000, respectively. Their profit or loss ratio is 3:5:2. On August 1, 2018, HELEN retires from the partnership. On
the date of retirement, the partnership net loss from January to 2 is P 384,000 and the partners agreed to revalue
inventories to P 296,000 (from the carrying amount of P 272,000). The payment to HELEN in settlement of her
interest is to be P 454,800
Upon the retirement of HELEN, which of the following will result?
A. Bonus to IRENE of P 2,000
B. Bonus to JESSA of P 800
C. Goodwill to JESSA of P 2,800
D. IRENE’s capital is P 66,800 more than JESSA’s

21. A local partnership was considering the possibility of liquidation since one of the partners (Ding) was
insolvent. Capital balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis,
respectively.

Ding, capital $ 60,000

Laurel, capital 67,000
Ezzard, capital 17,000
Tillman, capital 96,000

Ding's creditors filed a $25,000 claim against the partnership's assets. At that time, the partnership held assets reported at
$360,000 and liabilities of $120,000.
If the assets could be sold for $228,000, what is the minimum amount that Ding's creditors would have received?
A) $36,000.
B) $0.
C) $2,500.
D) $38,720.
E) $67,250.

22. A local partnership was considering the possibility of liquidation since one of the partners (Ding) was
insolvent. Capital balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis,
respectively.

Ding, capital $ 60,000

Laurel, capital 67,000
Ezzard, capital 17,000
Tillman, capital 96,000

Ding's creditors filed a $25,000 claim against the partnership's assets. At that time, the partnership held assets reported at
$360,000 and liabilities of $120,000.
If the assets could be sold for $228,000, what is the minimum amount that Laurel's creditors would have received?
A) $36,000.
B) $0.
C) $2,500.
D) $38,250.
E) $67,250.

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23. A local partnership was considering the possibility of liquidation since one of the partners (Ding) was
insolvent. Capital balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis,
respectively.

Ding, capital $ 60,000

Laurel, capital 67,000
Ezzard, capital 17,000
Tillman, capital 96,000

Ding's creditors filed a $25,000 claim against the partnership's assets. At that time, the partnership held assets reported at
$360,000 and liabilities of $120,000.
If the assets could be sold for $228,000, what is the minimum amount that Ezzard's creditors would have received?
A) $36,000.
B) $0.
C) $2,500.
D) $38,250.
E) $67,250.

24. A local partnership was considering the possibility of liquidation since one of the partners (Ding) was
insolvent. Capital balances at that time were as follows. Profits and losses were divided on a 4:2:2:2 basis,
respectively.

Ding, capital $ 60,000

Laurel, capital 67,000
Ezzard, capital 17,000
Tillman, capital 96,000

Ding's creditors filed a $25,000 claim against the partnership's assets. At that time, the partnership held assets reported at
$360,000 and liabilities of $120,000.
If the assets could be sold, for $228,000 what is the minimum amount that Tillman's creditors would have received?
A) $36,000.
B) $0.
C) $2,500.
D) $38,250.
E) $67,250.

25. Dancey, Reese, Newman, and Jahn were partners who shared profits and losses on a 4:2:2:2 basis,
respectively. They were beginning to liquidate their business. At the start of the process, capital balances
were as follows:

Dancey, capital $ 72,000

Reese, capital 32,000
Newman, capital 52,000
Jahn, capital 24,000

Which one of the following statements is true?

A) The first available $16,000 would go to Newman.
B) The first available $16,000 would go to Dancey.
C) The first available $8,000 would go to Jahn.
D) The first available $8,000 would go to Reese.
E) The first available $4,000 would go to Jahn.

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26. On May 1, 2015, Frances and Marella formed a partnership and agreed to share profits and losses in the ratio of 3:7,
respectively. Frances contributed a parcel of land that cost P 10,000. Marella contributed P 40,000 cash. The land was
sold for P 18,000 on May 1, 2015, immediately after formation of partnership. What amount should be recorded in
Frances’s capital account on formation of the partnership?
A. P 15,000
B. P 10,000
C. P 14,700
D. P 18,000

27. Charlotte has P 220,000 net assets in her business before formation. Charlotte admitted Amigo and Baltimore into his
business. The partners agreed to a total partnership capital of P 600,000 and that no intangibles will be recognize. The
partners Amigo, Baltimore, and Charlotte will have 20%, 40%, and 40% capital interest, respectively. If in pursuant to
their agreement, Amigo and Baltimore contributed P 100,000 and P 280,000 for their respective capital interest, which
statement is correct?
A. Amigo will be credited for P 20,000 bonus
B. Baltimore will be debited for P 32,000 goodwill
C. Charlotte will be debited for a bonus of P 8,000
D. Amigo and Charlotte will be credited for a P 24,000 and P 8,000 bonus respectively.

28. January 1, 2013, Kim, Judith and Nathalie formed a partnership with profit or loss sharing agreement of 2:3:5.
Kim contributed a land with assessed value from city assessor in the amount of P 1,000,000. The land is subject to
real estate mortgage which is annotated to the title of the land in the amount of P 800,000 and will be assumed by the
partnership. The appraised value of the land is P 2,400,000. Judith contributed a building with a cost of P 2,000,000
and accumulated depreciation of P 1,500,000. The fair value of the building is P 800,000. Nathalie contributed
investment in trading securities with historical cost of P 6,000,000. The trading securities have quoted price in active
market of P 3,000,000.
The partners decided to bring their capital balances in accordance with their profit or loss sharing agreement. The total
agreed capitalization of the new partnership is P 10,000,000.
Which of the following statement is correct?
A. The agreed capital of Nathalie is P 500,000
B. Kim should contribute additional capital in the amount of P 1,800,000
C. Judith should contribute additional capital in the amount of P 2,200,000
D. Nathalie is entitled to withdraw in the amount of P 1,000,000

29. The Abrams, Bartle, and Creighton partnership began the process of liquidation with the following balance
sheet:

Cash $ 16,000 Liabilities $ 150,000

Noncash assets 434,000 Abrams, capital 80,000
Bartle, capital 90,000
Creighton, capital 130,000
Total $ 450,000 Total $ 450,000

Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be
$12,000.
If the noncash assets were sold for $234,000, what amount of the loss would have been allocated to Bartle?
A) $43,200.
B) $46,800.
C) $40,000.
D) $42,400.
E) $43,100.

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30. The Abrams, Bartle, and Creighton partnership began the process of liquidation with the following balance
sheet:

Cash $ 16,000 Liabilities $ 150,000

Noncash assets 434,000 Abrams, capital 80,000
Bartle, capital 90,000
Creighton, capital 130,000
Total $ 450,000 Total $ 450,000

Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be
$12,000.
The noncash assets were sold for $134,000. Which partner(s) would have had to contribute assets to the partnership to
cover a deficit in his or her capital account?
A) Abrams.
B) Bartle.
C) Creighton.
D) Abrams and Creighton.
E) Abrams and Bartle.

31. The Abrams, Bartle, and Creighton partnership began the process of liquidation with the following balance
sheet:

Cash $ 16,000 Liabilities $ 150,000

Noncash assets 434,000 Abrams, capital 80,000
Bartle, capital 90,000
Creighton, capital 130,000
Total $ 450,000 Total $ 450,000

Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be
$12,000.
After the liquidation expenses of $12,000 had been paid and the noncash assets sold, Creighton had a deficit of $8,000.
For what amount were the noncash assets sold?
A) $170,000.
B) $264,000.
C) $158,000.
D) $146,000.
E) $185,000.

32. The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation:

Cash $ 10,000 Liabilities $ 130,000

Noncash assets 300,000 Keaton, capital 60,000
Lewis, capital 40,000
Meador, capital 80,000
Total $ 310,000 Total $ 310,000

Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. Noncash assets were sold for $180,000.
Liquidation expenses were $10,000.

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Assume that Lewis was personally insolvent and could not contribute any assets to the partnership, while Keaton and
Meador were both solvent. What amount of cash would Keaton have received from the distribution of partnership assets?
A) $38,000.
B) $30,000.
C) $24,000.
D) $34,000.
E) $31,600.

33. The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation:

Cash $ 10,000 Liabilities $ 130,000

Noncash assets 300,000 Keaton, capital 60,000
Lewis, capital 40,000
Meador, capital 80,000
Total $ 310,000 Total $ 310,000

Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. Noncash assets were sold for $180,000.
Liquidation expenses were $10,000.
Assume that Keaton was personally insolvent with assets of $8,000 and liabilities of $60,000. Lewis and Meador were
both solvent and able to cover deficits in their capital accounts, if any. What amount of cash could Keaton's personal
creditors have expected to receive from partnership assets?
A) $30,000.
B) $0.
C) $52,000
D) $26,000
E) $34,000

34. The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account
balances:

Cash $ 90,000 Liabilities $ 60,000

Noncash assets 300,000 Henry, capital 80,000
Isaac, capital 110,000
Jacobs, capital 140,000
Total $ 390,000 Total $ 390,000

Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4.
What amount of cash was available for safe payments, based on the above information?
A) $30,000.
B) $85,000.
C) $25,000.
D) $35,000.
E) $40,000.

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35. The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account
balances:

Cash $ 90,000 Liabilities $ 60,000

Noncash assets 300,000 Henry, capital 80,000
Isaac, capital 110,000
Jacobs, capital 140,000
Total $ 390,000 Total $ 390,000

Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4.
Before liquidating any assets, the partners determined the amount of cash available for safe payments. How should the
cash be distributed?
A) in a ratio of 1:2:2 among the partners.
B) $18,333 to Henry and $16,667 to Jacobs.
C) in a ratio of 1:2 between Henry and Jacobs.
D) $15,000 to Henry and $10,000 to Jacobs.
E) $11,364 to Henry and $13,636 to Jacobs.

36. The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account
balances:
Cash $ 90,000 Liabilities $ 60,000
Noncash assets 300,000 Henry, capital 80,000
Isaac, capital 110,000
Jacobs, capital 140,000
Total $ 390,000 Total $ 390,000

Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4.
Before liquidating any assets, the partners determined the amount of cash for safe payments and distributed it. The
noncash assets were then sold for $120,000, and the liquidation expenses of $5,000 were paid. How much of the
$120,000 would be distributed to Henry?
A) $23,000. D) $27,000.
B) $24,000. E) $28,000.
C) $40.000.

37. The following account balances were available for the Perry, Quincy, and Renquist partnership just before it
entered liquidation:
Cash $ 90,000 Liabilities $ 170,000
Noncash assets 300,000 Perry, capital 70,000
Quincy, capital 50,000
Renquist, capital 100,000
Total $ 390,000 Total $ 390,000

Perry, Quincy, and Renquist had shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be
$8,000.
All partners were solvent. What would be the minimum amount for which the noncash assets must have been sold for, in
order for Quincy to receive some cash from the liquidation?
A) any amount in excess of $175,000.
B) any amount in excess of $117,000.
C) any amount in excess of $183,000.
D) any amount in excess of $198,667.
E) any amount in excess of $168,333.

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38. The following account balances were available for the Perry, Quincy, and Renquist partnership just before it
entered liquidation:
Cash $ 90,000 Liabilities $ 170,000
Noncash assets 300,000 Perry, capital 70,000
Quincy, capital 50,000
Renquist, capital 100,000
Total $ 390,000 Total $ 390,000

Perry, Quincy, and Renquist had shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be
$8,000.
Assume that Quincy was insolvent and could not contribute assets to cover any deficit in her capital account. For what
amount must the noncash assets have been sold, so that Renquist would have received some cash from the liquidation?
A) any amount in excess of $108,000.
B) any amount in excess of $58,000.
C) any amount in excess of $201,600.
D) any amount in excess of $50,000.
E) any amount in excess of $104,000.

39. A local partnership was in the process of liquidating and reported the following capital balances:
Justice, capital (40% share of all profits and losses) $ 23,000
Zobart, capital (35%) 22,000
Douglass, capital (25%) ( 14,000)

Douglass indicated that the $14,000 deficit would be covered by a forthcoming contribution. However, the two remaining
partners asked to receive the $31,000 that was then available.
How much of this money should Justice receive?
A) $15,000.
B) $15,467.
C) $17,333.
D) $16,533.
E) $15,867.

40. A local partnership was in the process of liquidating and reported the following capital balances:
Justice, capital (40% share of all profits and losses) $ 23,000
Zobart, capital (35%) 22,000
Douglass, capital (25%) ( 14,000)

Douglass indicated that the $14,000 deficit would be covered by a forthcoming contribution. However, the two remaining
partners asked to receive the $31,000 that was then available.
How much of this money should Zobart receive?
A) $15,000.
B) $14,467.
C) $17,333.
D) $15,633.
E) $15,867.

Prepared by: Aldrin R. Calimlim,CPA Page 12